Mowbray Ltd makes and sells one product, the standard costs of which are as follows: The monthly production and sales are planned to be 1,200 units. The actual results for May were as follows: There were no inventories at the start or end of May. As a result of poor sales demand during May, the business reduced the price of all sales by 10 per cent. Required: Calculate the budgeted profit for May and reconcile it to the actual profit through variances, going into as much detail as is possible from the information available